It’s just April and it’s raining unicorns already

As many as eight Indian startups have garnered the coveted distinction of being valued at more than $1 billion this year—half of them just this week—as investors jostled for a slice of companies that have gained the most from the accelerated digitization of the economy because of the pandemic.

Startups that have turned unicorns in 2021 include infrastructure technology provider Infra.Market; health-tech provider InnovAcer; non-bank lender Five Star Business Finance; e-pharmacy API Holdings; social commerce startup Meesho; and fintech companies Digit Insurance, Groww and Cred.

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The first week of April, in fact, has been especially good for startups, with four already achieving unicorn status and a fifth one in the artificial intelligence space expected to cross the $1 billion-valuation mark this week.

Unsurprisingly, investments in Indian startups have soared to a two-year high in the quarter to March, and the current boom isn’t showing any sign of slowing down.

Most of the recently funded startups have seen a threefold jump in valuations, compared with their last funding round.

For instance, Meesho, which was recently valued at $2.1 billion, saw its valuation triple from its previous funding round in 2019. Investment platform Groww also saw a near-threefold growth.

Surplus dry powder with venture capital firms, a positive outlook towards public listings and a strong equity market performance are giving investors confidence to make the risky bets, analysts said.

“With covid, it is clear that digital acceleration has happened, leading to heightened investments in new-age entities which deliver services through technology-first models. There are 2-3 top players that have emerged now in each sector as a function of market maturity among Indian startups. Hence, it is clear that a higher quantum